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Are Investors Undervaluing Charles River Associates (CRAI) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Charles River Associates (CRAI - Free Report) . CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 22.85, while its industry has an average P/E of 25.32. CRAI's Forward P/E has been as high as 28.96 and as low as 21.59, with a median of 25.08, all within the past year.
Investors will also notice that CRAI has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRAI's industry currently sports an average PEG of 1.90. Within the past year, CRAI's PEG has been as high as 1.81 and as low as 1.35, with a median of 1.57.
Investors should also recognize that CRAI has a P/B ratio of 5.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CRAI's current P/B looks attractive when compared to its industry's average P/B of 6.51. Over the past 12 months, CRAI's P/B has been as high as 6.85 and as low as 4.58, with a median of 5.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRAI has a P/S ratio of 1.7. This compares to its industry's average P/S of 1.72.
Finally, investors will want to recognize that CRAI has a P/CF ratio of 16.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CRAI's P/CF compares to its industry's average P/CF of 18.69. Over the past 52 weeks, CRAI's P/CF has been as high as 20.36 and as low as 14.38, with a median of 17.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Charles River Associates is likely undervalued currently. And when considering the strength of its earnings outlook, CRAI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Charles River Associates (CRAI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Charles River Associates (CRAI - Free Report) . CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 22.85, while its industry has an average P/E of 25.32. CRAI's Forward P/E has been as high as 28.96 and as low as 21.59, with a median of 25.08, all within the past year.
Investors will also notice that CRAI has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRAI's industry currently sports an average PEG of 1.90. Within the past year, CRAI's PEG has been as high as 1.81 and as low as 1.35, with a median of 1.57.
Investors should also recognize that CRAI has a P/B ratio of 5.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CRAI's current P/B looks attractive when compared to its industry's average P/B of 6.51. Over the past 12 months, CRAI's P/B has been as high as 6.85 and as low as 4.58, with a median of 5.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRAI has a P/S ratio of 1.7. This compares to its industry's average P/S of 1.72.
Finally, investors will want to recognize that CRAI has a P/CF ratio of 16.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CRAI's P/CF compares to its industry's average P/CF of 18.69. Over the past 52 weeks, CRAI's P/CF has been as high as 20.36 and as low as 14.38, with a median of 17.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Charles River Associates is likely undervalued currently. And when considering the strength of its earnings outlook, CRAI sticks out at as one of the market's strongest value stocks.